Indefinite Nationwide Truck Strike Begins, Demands Include Lowering of Fuel Price and of Third Party Insurance Premium

Truck owners and operators launched an indefinite nationwide strike on Monday against increasing diesel prices and a sharp hike in third party insurance premium.

Channa Reddy, President, All India Confederation of Goods Vehicle Owners' Associations (AICGVOA) told IANS, "The indefinite strike against the soaring diesel prices and steep rise in the third party insurance premium begun this morning. About 90 lakh trucks are expected to be off the road and as of now, over 60 per cent trucks were not plying on the roads across India."

He said, "The government's argument is that the fuel price increase was due to international prices. However, we think the reason for price increase is not due to international prices but high taxes levied by the governments, Centre and the states."

Between May 14 and May 31 this year, the diesel price was increased by Rs 3.33 per litre that impacted the running cost of truck operators by about Rs one billion a day, AICGVOA observed. 

Demanding the inclusion of diesel prices or petroleum products in the ambit of Goods and Services Tax (GST), the Federation of West Bengal Truck Operators' Association Joint Secretary Sajal Ghosh said there has been a good response in the state, as about 3.5 lakh trucks would not ply on the roads.

He said that the Federation is also protesting police and Motor Vehicle Department officials' alleged excesses in the state. Moreover, truck owners requested the Insurance Regulatory Development Authority of India to detariff the third party insurance premium as it has done in the case of comprehensive insurance policy, Reddy said.

"The trend of annual increase of third party insurance premium has been continuing for last 15 years even after opening of the insurance sector. To stop the increase per year, we have requested the IRDAI to detariff this. But, the authority has not responded to our demand," Reddy added.

The IRDAI revised the third party liability insurance by 30 per cent for the year 2018-2019. The methodology adopted for calculating the proposed premium rates is based on the accident costs of the previous years and the age factor of different category of vehicles. This added more burden to the truck operators who are in crisis due to hiking diesel price, increase in costs of tyres and spare parts of the vehicle, maintenance price interest of vehicle loans and road tax among others. 

However, All India Motor Transport Congress has decided to stay away from the ongoing strike, and will be holding a separate strike from July 18.

(With inputs from IANS)